FingerMotion Completes 9.9% Investment in Lyken.AI, Paving Way for Enterprise Compute Expansion

FingerMotion Inc. (NASDAQ: FNGR) has completed its previously announced acquisition of a 9.9% interest in Lyken AI Computing Inc., operating as Lyken.AI, from Alset AI Ventures Inc. (TSXV: GPUS). The transaction, which received TSX Venture Exchange approval, involved FingerMotion acquiring 99,000 Lyken common shares in exchange for 1,674,480 restricted FingerMotion common shares, with no cash consideration paid at closing. Alset AI retains a 90.1% interest in Lyken.

This investment marks FingerMotion's formal entry into the enterprise computing market and represents the first step in its strategy to build a recurring-revenue enterprise compute business alongside its existing mobile data and telecommunications operations. The company intends to pursue enterprise compute as a distinct, scalable business line and may potentially increase its participation in Lyken and the underlying infrastructure, subject to commercial performance, capital availability, and regulatory requirements.

FingerMotion, an evolving technology company with core competencies in mobile payment and recharge platform solutions in China, sees this move as a strategic diversification. As its user base continues to grow, the company is developing additional value-added technologies to market to its users. The vision is to rapidly grow the user base organically and develop an ecosystem of highly engaged users, which would strategically position the company to onboard larger customer bases. FingerMotion eventually hopes to serve over 1 billion users in the China market and expand its model to other regional markets.

The enterprise compute sector is experiencing rapid growth, driven by increasing demand for AI and cloud services. By entering this market, FingerMotion aims to capitalize on the growing need for scalable computing infrastructure. This investment aligns with the company's long-term strategy to diversify revenue streams and reduce reliance on its mobile services, which are subject to market saturation and regulatory changes in China.

For FingerMotion, this move could open up new opportunities for partnerships and collaborations in the tech industry. The company's entry into enterprise compute may also attract investors looking for exposure to the high-growth AI sector. Additionally, the strategic investment could enhance FingerMotion's competitive position by leveraging Lyken.AI's expertise and infrastructure.

For more information on FingerMotion, visit the company's newsroom at https://ibn.fm/FNGR. For the full press release, see https://ibn.fm/Z71sB.